WBA - Walgreens Is Paying A Hefty Cost For Its Healthcare Transformation But It's Not Giving Up Despite Scary Competition From Amazon | Benzinga
Like Amazon.com Inc (NASDAQ: AMZN), Walgreens Boots Alliance (NASDAQ: WBA) is going for its piece of the healthcare pie. With its fiscal second quarter report, it topped estimates, but lowered the higher end of its full-year adjusted earnings guidance in response to a challenging macroeconomy. The new CEO, Tim Wentworth, continues to navigate the company out of a rough spot by slashing costs and solidifying the leadership team, but the company's healthcare transformation took its toll on the bottom line.
Fiscal second quarter highlights
For the quarter ended on February 29th, Walgreens recorded sales grew about 6.3% to $37.05 billion, surpassing LSEG’s estimate of $35.86 billion as sales grew across its three business segments. U.S. retail pharmacy segment brought in $28.86 billion as revenue grew almost 5%.
What particularly stood up is the U.S. health-care division whose sales expanded 33% YoY to $2.18 billion, owed to VillageMD’s acquisition of multispecialty care provider Summit Health and business growth on a pro-forma basis. Same clinic growth fueled VillageMD sales which grew 20%. New contracts ...